California Corporations Code 1306 – To the extent that the provisions of Chapter 5 prevent the payment to …
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To the extent that the provisions of Chapter 5 prevent the payment to any holders of dissenting shares of their fair market value, they shall become creditors of the corporation for the amount thereof together with interest at the legal rate on judgments until the date of payment, but subordinate to all other creditors in any liquidation proceeding, such debt to be payable when permissible under the provisions of Chapter 5.
(Repealed and added by Stats. 1975, Ch. 682.)
Terms Used In California Corporations Code 1306
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- dissenting shares: means shares to which all of the following apply:
California Corporations Code 1300
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.